Sanctions against Iran could drive up prices at the pump - WFSB 3 Connecticut

Sanctions against Iran could drive up prices at the pump

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(WFSB file photo) (WFSB file photo)

Drivers may have to shell out a little extra money the next time they fill up the tank due to the U.S. backing out of the Iran nuclear deal.

According to AAA, the crippling sanctions could lead to a crude oil price hike which would bump up gas prices this summer.

Rose McCarthy of Coventry said she passes the Citgo gas station on the Berlin Turnpike in Newington every day. She said when she does, she looks at the gas prices.

"Every day they're up a couple of cents," McCarthy said. "I got to fill up about twice a week, and I'm concerned about my kids having to spend all of their money on gas. Now, it's more and more. You've gotta do what you've gotta do."

The agency said Connecticut drivers are paying an average of $2.98 per gallon right now, which is 47 cents higher than this time last year.

AAA said prices haven't been that high since Dec. 2014.

"This is the time of year where it's typical to see gas prices on the rise," said Amy Parmenter, AAA spokesperson. "We're heading into the busy summer season, refineries switch over to the summer blend of gasoline, and crude oil has been high and that's been pushing has prices higher."

However on Tuesday, President Donald Trump announced that the U.S. is pulling out of the nuclear agreement

Now, AAA predicts the new sanctions could mean that gas prices will continue climbing deep into the summer driving season.

"Now, with the re-imposing of these sanctions, chances are that during the summer at some point, we could see gas prices go even higher," Parmenter said.

The sanctions could sharply curtail sales of oil by Iran, which is currently the world's fifth largest oil producer.

When it comes to oil sales, there will be a 180 day period for countries to wrap up existing contracts and achieve significant reductions in their purchase of crude oil from Iran.

"If it does impact crude oil prices and the price of the pump, the timing is such that it's going to happen during the busy driving season," Parmenter said.

Still, Parmenter said despite the higher prices, she didn't anticipate it to impact summer travel. She still believes people will go away and take road trips.

"Higher gas prices don't deter me from going to visit my mom or visiting my sister or going to New York for lunch," said Tom Karpf of Newington.

Other drivers were not thrilled about the prospect of higher pump prices.

"They're higher than they were before. They're also a lot lower than they were at one point. I'm not too unhappy about it. I'd like to see them go back down," said Carlos Rodriguez, a driver.

According to the auto club, it may take weeks or months for gas prices to jump.

“I notice that it usually goes higher before summer, gets cheaper in the winter for a little bit," Rodriguez said. “No matter what, I have to gas up. I can’t control it."

For more information on local gas prices and where to find the cheapest, check out GasBuddy here

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